All strengths, weaknesses, opportunities, and threats of SPYKE were found and compiled in a SWOT analysis by looking at internal operations and completing an external business analysis of SPYKE's market. An evaluation of the internal and external elements that affect SPYKE led to developing a lean business model based on the business model canvas. Conclusion: SPYKE’s technology is distinctive because of its affordability, reliability, passiveness and modularity, making it a desirable product for our envisioned target market.
Patenting
We learned that when a product or idea is novel, innovative, and industrially applicable (and that this can be verified), the creator can apply for a patent. This information was obtained via the patenting handbook of the 2020 Leiden iGEM team [32] and during our interactions with V.O. Patents & Trademarks. The biosensor created by SPYKE integrates a transcription factor in a capacitive sensor, which makes it a pioneer in the field of biosensors. Therefore, if there is a desire to commercialize SPYKE, we were recommended to submit a patent application. We approached Blijke Kroezen, a patent attorney at V.O. Patent and Trademarks, and, after recognizing the potential of our project, she suggested that we pursue a priority patent. The patent was filed on 30/09/2022 thanks to her help.
It covers the method including the protein and DNA sequences, and the hardware that we used. It also mentions our application: a GHB biosensor.
This priority application offers several advantages. First, it gives us a year from the filing date to develop the idea further and demonstrate its viability before submitting a more expensive international patent application (PCT). The filing date, or "priority date", is registered in the meantime. This means that we will still be able to maintain exclusivity on our technique even if someone reveals a comparable discovery after this time. Therefore, a priority patent application gives us the opportunity to create intellectual property (IP) with less financial outlay.
Second, filing for a patent makes it simpler to draw in investors and persuade partners to work with us. Our technology may easily be used by a bigger opponent with more resources if we didn't get a patent for it [TU Delft, section Porter’s Five Force Analysis ]. This would significantly lower SPYKE's value to investors. By safeguarding our intellectual property, we own the technology. This increases the company's appeal to financiers and business associates, making it simpler to get funding and other resources [33].
Manufacturing
Manufacturing may start after it has been established that there is a market for a biosensor of SPYKE's specifications and that it can be made cost-effectively and reliably to the level of quality required to meet the market criteria. When making plans to produce a biosensor, safety and packaging are the two primary factors to consider [34].
When production shifts to a large-scale operation, safety becomes a top priority. When handling the product, certain safety precautions must be taken into account as the sensor contains biological elements, including DNA strands and proteins. Additionally, SPYKE requires the use of GMOs during its manufacturing, thus safety measures must take this into account as well. It is also essential to have protocols in place to be able to safely dispose of components containing biological elements. Measures are also necessary for the electronics component. For instance, alteration of the electrode during manufacturing calls for solvents that, when used in large quantities, could pose a health risk; this is a factor that needs to be considered. Overall, an efficient ventilation system and air conditioning system should be adopted in areas where electronic components are prepared, which could significantly affect the budget of the company [TU Delft, section Cost plan ].
Another crucial component of manufacturing is packaging. A sealed container would be preferable because biosensors are sensitive to their surroundings. Since the product needs to be food-safe, we will comply with the current rules and use recycled plastic, rPET, as the main material both for the cup and its packaging.
As was already indicated, GMOs are necessary to lower SPYKE's long-term costs. Therefore, the European manufacturer of SPYKE is chosen to assure the safety of the production process, our manufacturing staff, and the test itself. We have chosen to locate our business in the Netherlands because we are more familiar with both the situation regarding drink spiking and regulations concerning working with GMOs here. Thanks to our stakeholders we already have relationships with suppliers, potential clients, and sponsors [TU Delft, section integrated human practices ].
Distribution
In a perfect world, we would utilize the current transportation network to distribute SPYKE. The best choice would be to freeze dry the product because it contains biological components that must be preserved for an indefinite period of time. Since the issue of requiring a low temperature would no longer exist, this would also benefit transportation.
Furthermore, it is our responsibility to abide by Dutch legislation as our company will be situated in the Netherlands. The Dutch Civil Code is based on contractual freedom, which states that distributors and suppliers are only held to the agreements they have made directly with one another. There are, however, a few requirements for distribution agreements. Most of these are derived from competition rules [35].
Compliance
To launch SPYKE on the market, our test and read-out device must comply with local laws and regulations. Therefore, SPYKE should abide by regulations that are upheld by the Netherlands, the European Union (EU), and the United States of America (USA). To get approval from all the regulatory bodies, certifications must be acquired that guarantee the safety of the different components of our product. An overview of the most pressing regulations and certifications can be found in Table 2.
Table 2. Overview of main certifications and regulations that apply to SPYKE.
Certfication |
Regulatory body |
Type |
FDA approval [36] |
U.S. Food & Drug Administration FDA |
Food, drugs, and medical devices |
CE Marking [37, 38] |
European Economic Area (EEA) |
Safety, health, and environmental protection |
FCC certification [37, 39] |
U.S. Federal Communications Commission |
Electromagnetic emissions |
IEC 62133 [37, 40] |
International Electrotechnical Commission (IEC) |
Lithium-free batteries |
RoHS [37, 41] |
European Parliament (EU) |
Lead-free products |
FCM certification [42] |
European Food Safety Authority |
Food Contact Material |
Regulation (EC) No 1935/2004 [43] |
European Food Safety Authority |
Food Contact Material |
Project Plan
The Gantt chart in Figure 6 shows the anticipated length of time needed for the SPYKE rollout. Three categories were taken into account for this: the research and development stage, the legal admission, and the development of the company itself.
Figure 6. Project plan for SPYKE [46].
Research and Development stage
We will put a lot of effort into the research and development of our biological and electrical components. In the first scenario, our main focus will be on tailoring the DNA oligo and the protein to increase the binding affinity [TU Delft, sections Module 2 and Module 3 ], which is crucial for a quick response.
Optimization is also necessary for the reaction conditions. The concentrations of DNA and proteins have an impact on how quickly the sensor reacts. We market our product as fast-acting, hence the biosensor must be able to identify GHB in a matter of minutes if not quicker. Additionally, because the item is within a glass, it will constantly interact with the beverage, which is a highly variable environment. Since the temperature [44] and pH [45] in this condition can change significantly over time and between different contents, our biomolecules must be adaptable to this shift. A solid development plan and in-depth research will be needed for this.
Consequently, we will concentrate mostly on the electronics to shrink the size of our sensor and validate our hardware. Additionally, we will assess its response to external stimuli since it will be exposed to the same environment as the biological component.
Legal Admission
The company will be registered during the first month of 2023. Since we have already filed a priority patent, we will have to proceed and work on the main claims we filed to confirm them for the international patent. Moreover, we will need to apply for a food safety certificate, which is required for any product in contact with food or beverages [42].
Company
For our product to be commercialized, funding is needed. Investors’ interest determines the length of time needed for fundraising. Agreements with suppliers and distributors of the test components are necessary, in addition to funds. As soon as the research and development phase is completed, negotiations with suppliers and distributors may begin since by that time, we will know how the biosensor will look when all the parts are in place. Following these negotiations, the real manufacture, packaging, and rollout begin. We plan to launch the product in the first quarter of 2025 officially.
Porter’s five forces analysis
Porter’s five forces analysis [46] outlines elements that can assist companies in comprehending the advantages and disadvantages of a specific market or business. Porter's 5 forces are (1) Competition in the industry, (2) Potential of new entrants into the industry, (3) Power of suppliers, (4) Power of customers, and (5) Threat of substitute products [46].
Figure 7. A graphical representation of Porters’ Five Forces analysis on the prospective market of SPYKE [46].
Rivalry among existing competitors
The market for rapid, reliable, passive, and on-site tests is restricted nowadays. All the tests available on the market require active testing, as presented in the market analysis section. Moreover, the test methods for GHB in-situ are very expensive and single-use, characteristics that we know are not favored by the customers [TU Delft, survey to users ]. Nowadays, almost no one tests GHB in their drink in clubs or bars even though there is a general concern regarding this topic, which leads us to suspect that there isn’t a valuable alternative to our product. In hospitals, GHB is tested through a laborious procedure that requires specific laboratory equipment and trained pharmacists. This results in a slow protocol and inefficient first aid response [TU Delft, market analysis ]. Due to its greater accessibility, lower cost, modularity, and lack of a need for active testing, SPYKE sets itself apart from both detection and prevention tests. This makes us believe that once we enter this market, the disparity in products between SPYKE and its rivals will not be disadvantageous to our business.
Threat of new entrants
The risk of new entrants into our potential market heavily depends on the obstacles to entering this sector. The following is a list of constraints that keeps rivals out of the Western European GHB biosensor market. The threat of new entrants into the business is minimal as a result of these entry restrictions [47].
- Legal barriers to entry
Our exclusive right to make the SPYKE technology is protected by a patent. As a result, it is against the law for competitors to copy our developed technique. Additionally, particular permits are needed in order to test this product. Companies must get a specific institutional permit in order to work with GHB because it is classified as a drug in List 1 of the Dutch Opium Act [48]. This permit can take up to a year to secure, which stifles potential competitors from entering this market.
- Technical barriers to entry
In order for industries to enter this market, they need solid initial capital due to the high-startup costs. Laboratory equipment is very expensive, as well as the biological and electrical supplies needed to develop such a product. Additionally, there are a lot of sunk expenses in this sector, including those for marketing, research, advertising, distribution, and development. When developing the budget for the new company, these expenses, which are not always recoverable, must be considered.
Moreover, a significant amount of knowledge in both the biological and electrical disciplines is needed for this kind of undertaking. Due to the expertise required that must be met before entering the industry, this factor reduces the number of possible competitors.
- Strategy barriers to entry
Due to the fact that the product we provide has not yet reached the market [TU Delft, market analysis ], SPYKE qualifies as a "first mover". With this title, we have a strong brand identity and excellent visibility. As a result, rivals would have to spend a significant amount of money on branding and getting their industry acknowledged. Being the first to market would also help us build brand loyalty, which would again provide a challenge for the potential rival.
Power of buyers
Customers of SPYKE are classified as individual users and public hospitality businesses [TU Delft, empathy map ]. We strive for a test that is affordable and available to everyone, regardless of socioeconomic status, to lessen reliance on charitable giving or health insurance. As a result, we must maintain a reasonable price for our product [TU Delft, cost analysis ]. Additionally, we want businesses to buy numerous tests in a single order from a single facility [TU Delft, proposed implementation ]. The purchasers' negotiating strength is increased by these two requirements. However, the bargaining power of clients is diminished because SPYKE has a special test that is not yet offered on the market [TU Delft, market analysis ]. As a result, the industry is only moderately impacted by consumer bargaining power.
Threat of substitute products or services
A potential substitute product could be a device that tests for multiple drugs, and not only GHB. This would provide a multi-use product that could further improve the user’s safety. The aforementioned entrance obstacles must be surmounted in order for a corporation to create and use a multi-detection biosensor that satisfies the demands for sensitivity, specificity, accuracy, and quality. Furthermore, it is difficult to find biosensors on the market that can test for numerous compounds at once, necessitating additional study and a greater level of competence.
Power of suppliers
Providers are required to provide SPYKE with the following four key resources:
- Biological components of the sensor [TU Delft, parts ]
- Substrate for GMOs that produce cell-free systems and plasmids [TU Delft, parts ]
- Membrane filters for the electrical system [TU Delft, proposed implementation ]
- Electronics for the hardware [TU Delft, hardware ]
- Plastic cup with the components descriped in hardware [TU Delft, hardware ]
- O rings to improve the watertightness[TU Delft, hardware ]
Regarding the first two criteria, we are using a short DNA strand and a particular protein, which makes us a minor customer in this market because macromolecules like these are frequently used in laboratories. Large business fields also frequently use filters, which guarantees us a lower incidence of their revenue. We use a minimal circuit for the hardware's electronics in order to provide the safest end result to our clients, which implies that the costs are too low to compete with those of tech giants.
PESTEL analysis
The design of SPYKE and its suggested implementation were based on discussions with stakeholders . These specific decisions may be influenced by political, economic, social, technological, legal, and environmental issues. A PESTEL analysis was done to determine which decisions have a high likelihood of being impacted by these factors.
Figure 8. Analysis of the political, economic, social, technological, legal and environmental factors that can play a role in the implementation of SPYKE.
SWOT analysis
The so-called SWOT matrix can be used to condense SPYKE's strengths, weaknesses, opportunities, and threats after defining all internal operations and performing an external company study. While opportunities and threats represent the external business environment and its benefits and drawbacks, strengths and weaknesses describe the advantages and downsides of the internal operations of the firm. Figure 9 displays this SWOT analysis.
Figure 9. Analysis of the strengths, weaknesses, opportunities and threats of the development and introduction of SPYKE.
Responsible Innovation
We place high importance on sustainability from an environmental and socioeconomic standpoint. Here, we go over our plans for implementing these values in our company. Our solution should guarantee long-term sustainability in order to responsibly address the issue of drink spiking with GHB.
Socio-economic sustainability
SPYKE must be advantageous to those involved in any phase of its life cycle in order to be socio-economically viable, or at the very least have minimal adverse effects. We plan to accomplish this by:
Monitoring unintended side-effects
Since our method is innovative, there is a chance that it could have unintended negative impacts, like those listed in the risk and benefit analysis. We intend to increase the socio-economic sustainability of our sensor by keeping an eye on such adverse effects through the analysis of the test data and by testing our device’s performance.
Not exerting monopoly power
We are the unique provider of SPYKE thanks to patenting. If SPYKE users become dependent on it, the monopoly position could be abused by requesting greater profits. Promoting fair competition, partnerships, public oversight, and anti-monopoly laws and regulations should avoid this.
Environmental sustainability
We aim to reduce the ecological footprint of each stage of SPYKE's life cycle from the perspective of environmental sustainability. To do this, we performed a Life Cycle Analysis on these phases and developed methods for reducing our ecological footprint.
Raw material extraction
In order to create SPYKE, raw resources like gold, amino acids, nucleotides, and copper are required. We should build a connection with suppliers who place an equal emphasis on environmental sustainability, such as through the bio-production of gold and the use of renewable energy, in order to reduce the environmental impact of extracting these raw materials. To minimize transportation, it is preferable that these suppliers be located close to the manufacturing location.
Manufacturing and processing
SPYKE’s manufacturing process was created by us. This method uses heat exchange and continuous batch scheduling to save energy expenses. We would make an effort to use as much renewable energy as possible throughout the manufacturing of the biosensor.
Transportation
SPYKE will make use of the pre-existing distribution network already in place across Europe. To cut down on transportation expenses and carbon emissions, we established our company in the Netherlands [see manufacturing ].
Waste
SPYKE’s implementation is built on a system of recycling [see proposed implementation ]. We want to ensure the quality of the sensors by collecting used cups, and recycling and recharging components in-house only. This is done to minimize the risk of sensors becoming defective due to improper handling by others. To achieve this, a strong line of contact between the hospitality industry and our firm needs to be established. The majority of the components of our biosensor can be recycled or reused thanks to SPYKE's design [see integrated human practices ].
Our goal is to create an on-site deployable GHB passive biosensor. We hope to increase data availability on GHB drink spiking and lower its incidence by creating and putting the test into practice. To assess SPYKE's potential, a business model was developed. The business model canvas template is used to describe our company plan.
There are nine different areas in the business model canvas. The core ideas of our product are at the center of the business model. The customer groups, client relationships, distribution channels, and income streams are used to characterize the sales on the right side of the canvas. The important partners, key activities, key resources, and the cost structure on the left reflect the internal operations.
Figure 10. Business Model Canvas of SPYKE.
Cost structure and revenue streams
The production of the test, ongoing research and development, transportation, and other unstructured activities are the sources of SPYKE's expenses. These costs need to be offset by the income streams generated by SPYKE in order to break even and eventually turn a profit. The manufacturing costs can be divided into two categories: costs of the biological parts and costs of the hardware. By considering the two primary elements of the test—the oligonucleotide and the transcription factor, BlcR—an evaluation of the expenses of the biological components was made. Table 3 provides a breakdown of the pricing of each of these parts per cup. Table 4 lists the prices of the hardware prototype per cup, which are described in detail in the hardware manual.
Table 3. Costs of the biological part.
Component |
Cost |
Oligonucleotide (IDT) |
€1,14 |
Plasmid pET11a-BlcR |
€1,78 |
Total |
€2,92 |
Table 4. Costs of the hardware.
Component |
Cost |
Electronics |
€47,12 |
3D printing |
€10 |
Other |
€4,41 |
Total |
€61,53 |
Transport and packaging are two additional expenses that are directly tied to the product. The revenue streams SPYKE generates from the sale of the product must be used to pay for these expenses. Start-ups are typically encouraged to estimate margins of 50% to 60% of the total costs of the product [49]. This buffer was raised to 100% of the previously calculated cost of the biological parts and additional equipment because it is difficult to determine the exact expenses associated with these activities in the early stages of research and development (R&D) (present stage of SPYKE). Since the expenses listed here are for the proof-of-concept prototype and we anticipate a significant reduction in the costs for the manufacture of the final hardware, 50% margins were decided for the hardware after comparison.
Funds need to be raised in order to pay for the costs incurred during the early start-up period. This can be accomplished by attracting investors, as well as by pursuing funding and innovation competition applications. The product and the business need to be pitched to potential investors in order to acquire the former. The company model and the market potential are covered in the pitch. Together with Delft Enterprises and SkylineXD, we collected input on our business approach. We looked at funding options as well and discovered that there are sizable research grants that we could apply for from organizations like the Nederlandse Organisatie voor Wetenschappelijk Onderzoek (NWO) [50].